Richard Wilson is founder of Wilson Holding Company and the CEO of The Miami Family Office, a single family office with $500M in assets, he runs the largest family office association globally, and is a bestselling author of The Single Family Office Book.

Wikinvest Wire

Andrew Lo Interview

Andrew Lo on Hedge Fund Regulation

I recently came across a short interview with Andrew Lo on the hedge fund industry and what additional regulations should be put in place within the United States. Here is the article excerpt from this interview:_____________

Let's talk hedge fund regulation. What sort of oversight is most appropriate?We don't need more regulation; we need better regulation. The majority of the problems we see in the current crisis emanated not from the hedge fund industry, but from the banking sector, which is probably the most highly regulated industry in the world. The main theme of my work has been to create more transparency in the financial sector, because one of the problems that arose and is still causing problems in our banking system is the lack of transparency and the fear it breeds. One of the strongest kinds of fear is fear of the unknown. That's exactly where we're at today with people fearing what they don't know about "toxic assets," about defaults, about where some of these pricing models will lead us.What should a new regulatory framework look like?The major highlights are relatively straightforward. One is we ought to create some kind of a systemic risk oversight agency. I propose creating something like the National Transportation Safety Board for financial markets. source

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